i. Liability. The policies will insure liability for personal injuries, death
or property damages, arising or occasioned in any manner by the acts or omissions of
Lessor, Lessee, or others with respect to the custody, operation or use of or with respect
to said Aircraft in an amount not less than $1,000,000 per occurrence relative to
the personal injuries and/or death, and relative to the property damage of others, all set
within a single limit of coverage. Lessee shall be an additional named insured on said
policies.

     ii. Hull Insurance. The policies will insure against the loss or damage from
any cause or causes to the Aircraft for not less than $500,000 unless a different value is
agreed upon in writing between Lessee and Lessor. The policies shall be for the benefit of
Lessor with Lessor named as the sole loss payee. Any policies insuring against the loss or
damage to the Aircraft will provide a waiver of subrogation in favor of Lessee. Lessee
shall be responsible and shall reimburse Lessor for the amount of the deductible, if any,
if the damage to said Aircraft is incurred during Lessee’s use hereunder. Such deductible
will not exceed $5,000 in motion or $2,000 not in motion unless agreed upon in writing
between Lessee and Lessor. Such policies need not include coverage against war risks.